Conflict-of-interest issue for Rice on Keystone XL project?

posted at 12:11 pm on November 29, 2012 by Ed Morrissey

The odds of Susan Rice getting the nomination to replace Hillary Clinton may have just gotten longer, perhaps even longer than the proposed length of the Keystone XL pipeline project. That’s not an accidental analogy either, as the embattled UN Ambassador’s finances have begun attracting some interest. Rice’s wealth includes a substantial investment in TransCanada, the firm that wants to build the pipeline — and the next Secretary of State will make the official decision on whether it proceeds:

Susan Rice, the U.S. Ambassador to the United Nations whose name has been floated as a possible secretary of state nominee, may soon face opposition from the environmental lobby over what the Natural Resources Defense Council (NRDC) called a potential financial conflict of interest on Wednesday.

According to her May 2012 financial disclosure, Rice has an investment in TransCanada Corporation worth between $300,000 and $600,000. TransCanada is angling for the State Department’s permission to build the final portion of the Keystone XL pipeline — a 1,700-mile conduit for crude oil between Canadian deposits and Texas refineries.

If she were confirmed as secretary of state, Rice would have final authority to green-light the large section of the pipeline project still languishing in regulatory purgatory.

Rice and her husband, a producer at ABC News, have a net worth between $26 million and $39 million, making Rice one of the wealthiest members of Obama’s Cabinet. There is nothing wrong with that, of course, and the overall wealth shows that this investment is a very small part of Rice’s portfolio. However, that may not matter to those who oppose Rice’s nomination, nor to those who oppose the Keystone XL pipeline, two very different constituencies that might have a common cause if Obama sends her name in nomination to the Senate.

The Washington Post reports that chances of that happening appear to be dimming somewhat, although not entirely extinguished. Democrats are publicly supportive of Rice, but privately wondering whether this is a fight worth having:

The choice of a successor to Hillary Rodham Clinton as secretary of state has turned into an unexpectedly nasty political fight that could cost the White House valuable goodwill with Republicans.

Republican opposition to presumptive front-runner Susan E. Rice did not fade after the election, as White House officials and her supporters had predicted. Rice, the U.S. ambassador to the United Nations, did not win any public GOP support after meeting with two Republican senators Wednesday, her second day of unusual face-to-face sessions intended to blunt critiques of her role in explaining the fatal Sept. 11 terrorist attack in Libya. …

A White House official and Democratic aides said they think that Rice could win Senate confirmation for the top diplomatic job if Obama nominated her.

But with lawmakers potentially facing difficult votes on taxes or entitlements, confirmation could come at a high political cost for Obama and vulnerable Democrats facing reelection in 2014.

The Post also picked up on the conflict-of-interest story late this morning. They report on more connections between Rice and players in the pipeline effort, and a new effort by environmentalists to oppose her appointment:

If Susan E. Rice becomes Secretary of State, she might have to recuse herself from one of the first and most controversial decisions she would face: the Keystone XL oil pipeline permit.

The reason: Rice and her husband are major shareholders in the pipeline company as well as a variety of Canadian companies that are involved in exploiting the oil sands region of Alberta, which would feed the Keystone XL and benefit from a new outlet. …

Rice and her husband also own shares of major Canadian banks that are expected to provide financing for the Keystone XL project. They own between $50,000 and $100,000 of shares in Suncor, another oil sands company, and more than $1.25 million of shares in Transalta, the Alberta’s electric power producer.

At a time when Obama is fighting Republicans opposed to Rice, the financial disclosure form is likely to draw scrutiny from Democrats and environmental activists who have been among the president’s most reliable supporters.

Jennifer Rubin argued yesterday that the results of Rice’s charm offensive on Capitol Hill this week should disqualify her anyway, especially after flopping with Republican moderates Susan Collins and Bob Corker:

Collins is no wide-eyed right-winger and, moreover, is privy to materials reviewed in the Homeland Security Committee’s investigation of the Benghazi, Libya, scandal. Her opposition would likely mean unanimous Republican opposition to the nomination (45 votes, more than enough for a filibuster).

Likewise, Corker, known as a moderate deal-maker on the Hill, practically begged the president not to nominate her: “I am asking the president to step back away from all that’s happened and take a deep breath and to nominate the person that he really believes is the very best person to be secretary of State for our country, regardless of relationship.”

Indeed, it remains a bit of a puzzle why Rice, whose belly-flop on Capitol Hill doesn’t speak well of her diplomatic skills, is still in the hopper for State. There are more qualified candidates with less baggage who would sail through the Senate.

I suspect that Rice will end up staying where she is, and John Kerry will get a phone call in the next couple of months.

Blowback

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This will not stand in the way by anyone on the left including environmentalists. You see, that opposition only comes about when it is the wrong person who needs to be opposed. Rice is not a “wrong” person.

She is almost as rich as Romney. Can we pass the Susan Rice Rule instead of the Warren Buffet Rule that would tax ruling class hypocrites at the same high rate for AGI, dividends, investments, and capital gains? Treat it all at the same high rate.

Simple. The special group identiy obsessed donks need a black woman to challenge Hillary in 2016. Rice’s skin color plus gender will trump Hillary’s gender only advantage. This is all about establishing a resume for Rice to use in 2016.

Eisenhower warned of the military-industrial complex. Considering the frequent pairings of influential democrats and members of the media, one has to wonder about the democratic political-media complex within the same context as Ike’s warning, IMO.

Why is her name still in the hopper? Because – shocking revelation – Barack Obama is a petulant child who doesn’t like being told what he can or can’t do, especially by the people he supposedly just thrashed in an election.

There is a quick trick for deciphering almost any action taken by this Administration (i.e., this President). Put a big, fat ME in the middle and all will become clear, grasshopper.

Corruption is rampant in oba-mao’s circles……. where is the outrage? Where is Issa on this? That incompetent, community organizer ought to be impeached for violating the law and failing to uphold his oath of office…. taking an oath …… what a freaking joke and a disgrace to all of our former presidents and the founding fathers.

Because Obama, our dithering Resident, was not able to make a decision on the pipeline, so he handed it off via Executive Order #13337, to the State Department on the grounds a foreign country (Canada) was involved, and also, he didn’t know what to decide:

“On May 4, 2012, the Department of State received a new application from TransCanada Corp. for a proposed pipeline that would run from the Canadian border to connect to an existing pipeline in Steele City, Nebraska. The new application includes proposed new routes through the state of Nebraska. The Department is committed to conducting a rigorous, transparent and thorough review.”

This puts the Secretary of State squarely in the decision-making role. Yes, I’d say this is a conflict of interest:

“The Department’s responsibility, under Executive Order 13337, is to determine if granting a permit for the proposed pipeline is in the national interest. We will consider this new application on its merits. Consistent with the Executive Order, this involves consideration of many factors, including energy security, health, environmental, cultural, economic, and foreign policy concerns.”

Rice and her husband, a producer at ABC News, have a net worth between $26 million and $39 million, making Rice one of the wealthiest members of Obama’s Cabinet. There is nothing wrong with that, of course, and the overall wealth shows that this investment is a very small part of Rice’s portfolio.

I thought, at some point, you’ve made enough money. Are there exceptions now? Mabye this is another of those waivers that Obama is so fond of.

Eisenhower warned of the military-industrial complex. Considering the frequent pairings of influential democrats and members of the media, one has to wonder about the democratic political-media complex within the same context as Ike’s warning, IMO.

ted c on November 29, 2012 at 12:40 PM

Update needed, Ed.

U.N. ambassador has investments in companies doing business with Iran, disclosure forms show.

JPeterman on November 29, 2012 at 4:57 PM

As the lately-unlamented Warren Churchill (and others) discovered, once you get in front of the spot-light, you lose control of the narrative.